Generac Holdings 10-Q 2026-03-31

Filed 2026-05-05. 2 sections, 179K characters. Original on sec.gov · Markdown · JSON

Cover and table of contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended March 31, 2026

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

Commission File Number 001-34627

GENERAC HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware	20-5654756
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

S45 W29290 Hwy 59, Waukesha, WI	53189
(Address of principal executive offices)	(Zip Code)

(262) 544-4811

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GNRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 1, 2026, there were 58,868,681 shares of registrant's common stock outstanding.

GENERAC HOLDINGS INC.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	1

	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31 , 2026 and 2025	2

	Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2026 and 2025	3

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	4

	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	29

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

Item 3.	Defaults Upon Senior Securities	29

Item 4.	Mine Safety Disclosures	29

Item 5.	Other Information	30

Item 6.	Exhibits	30

	Signatures	31

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Generac Holdings Inc.
Condensed Consolidated Balance Sheets
(U.S. Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)

	*March 31,*			*December 31,*
	*2026*			*2025*
Assets
Current assets:
Cash and cash equivalents	$	265,530		$	341,413
Accounts receivable, less allowance for credit losses of $33,283 and $34,504 at March 31, 2026 and December 31, 2025, respectively		626,584			602,739
Inventories		1,251,793			1,248,867
Prepaid expenses and other current assets		305,061			269,459
Total current assets		2,448,968			2,462,478

Property and equipment, net		819,624			813,605

Customer lists, net		137,082			127,517
Patents and technology, net		330,136			338,308
Other intangible assets, net		7,796			10,011
Tradenames, net		213,664			199,430
Goodwill		1,486,807			1,467,094
Deferred income taxes		38,210			41,949
Operating lease and other assets		110,976			113,287
Total assets	$	5,593,263		$	5,573,679

Liabilities and stockholders’ equity
Current liabilities:
Short-term borrowings	$	43,950		$	50,618
Accounts payable		462,822			436,583
Accrued wages and employee benefits		55,571			69,850
Accrued product warranty		41,622			44,716
Other accrued liabilities		577,427			591,387
Current portion of long-term borrowings and finance lease obligations		26,390			22,192
Total current liabilities		1,207,782			1,215,346

Long-term borrowings and finance lease obligations		1,253,537			1,260,256
Deferred income taxes		56,786			60,913
Deferred revenue		236,504			232,921
Operating lease and other long-term liabilities		163,354			165,197
Total liabilities		2,917,963			2,934,633

Redeemable non-controlling interest		602			742

Stockholders’ equity:
Common stock, par value $0.01, 500,000,000 shares authorized, 74,218,726 and 74,050,753 shares issued at March 31, 2026 and December 31, 2025, respectively		742			741
Additional paid-in capital		1,195,494			1,187,419
Treasury stock, at cost, 15,464,527 and 15,373,990 shares at March 31, 2026 and December 31, 2025, respectively		(1,378,708	)		(1,358,053	)
Excess purchase price over predecessor basis		(202,116	)		(202,116	)
Retained earnings		3,076,810			3,003,557
Accumulated other comprehensive (loss) income		(17,530	)		874
Stockholders’ equity attributable to Generac Holdings Inc.		2,674,692			2,632,422
Noncontrolling interests		6			5,882
Total stockholders' equity		2,674,698			2,638,304
Total liabilities and stockholders’ equity	$	5,593,263		$	5,573,679

See notes to condensed consolidated financial statements.

Generac Holdings Inc.
Condensed Consolidated Statements of Comprehensive Income
(U.S. Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)

	Three Months Ended March 31,
	*2026*			*2025*

Net sales	$	1,059,365		$	942,121
Costs of goods sold		649,129			570,135
Gross profit		410,236			371,986

Operating expenses:
Selling and service		123,624			126,065
Research and development		62,656			62,048
General and administrative		76,285			74,746
Amortization of intangibles		30,380			25,489
Total operating expenses		292,945			288,348
Income from operations		117,291			83,638

Other (expense) income:
Interest expense		(15,376	)		(17,110	)
Investment income		1,683			2,225
Change in fair value of investments		(1,374	)		(9,947	)
Other, net		(5,465	)		(292	)
Total other expense, net		(20,532	)		(25,124	)

Income before provision for income taxes		96,759			58,514
Provision for income taxes		23,647			14,236
Net income		73,112			44,278
Net (loss) income attributable to noncontrolling interests		(141	)		438
Net income attributable to Generac Holdings Inc.	$	73,253		$	43,840

Net income attributable to Generac Holdings Inc. per common share - basic:	$	1.25		$	0.74
Weighted average common shares outstanding - basic:		58,412,205			59,062,534

Net income attributable to Generac Holdings Inc. per common share - diluted:	$	1.24		$	0.73
Weighted average common shares outstanding - diluted:		59,233,144			59,747,589

Comprehensive income attributable to Generac Holdings Inc.	$	54,849		$	68,799

See notes to condensed consolidated financial statements.

Generac Holdings Inc.
Condensed Consolidated Statements of Stockholders' Equity
(U.S. Dollars in Thousands, Except Share Data)
(Unaudited)

	Generac Holdings Inc.
													*Excess Purchase Price*					*Accumulated*
					*Additional*								*Over*					*Other*		*Total*
	Common Stock				*Paid-In*		Treasury Stock						*Predecessor*			*Retained*		*Comprehensive*		*Stockholders'*		*Noncontrolling*
	*Shares*		*Amount*		*Capital*		*Shares*			*Amount*			*Basis*			*Earnings*		*Income (Loss)*		*Equity*		*Interests*		*Total*
Balance at January 1, 2026		74,050,753	$	741	$	1,187,419		(15,373,990	)	$	(1,358,053	)	$	(202,116	)	$	3,003,557	$	874	$	2,632,422	$	5,882	$	2,638,304
Unrealized loss on interest rate swaps, net

Showing the first 8K of 174K characters. Open the full section